Takeover in a lease contract
How can i break a joint contract?
If the lease agreement is registered in all tenants’ name it means that all of them are responsible for the obligations included in the contract.
For this reason if one (or more) tenant want to break the contract, he/she might have (check in advance what the contract says about that):
- The extension of the contract for the other contractors, severally liable (without substitution or novation) with the consent of the outgoing tenant for the assumption of responsibility of the obligations included in the contract;
- The “partial cessation” of the contract (i.e. takeover) by the tenant that wants to break the contract, if there is someone that takes his place and if every tenant agree with it. The lease agreement takeover modify the contractual relationship in accordance with article 19 (Decree of the President of the Republic) n. 131/86. Accordingly, it is necessary to legally register, this modification. The lease agreement takeover doesn’t imply the novation of it;
- The novation of the contract: that is drawing up a new contract.
Lease agreement takeover
The procedure to do a legally takeover is:
- Have a properly registered contract;
- The previous transfer of the contracts must be regular;
- The transferee needs the consent of both transferor and landlord.
To registered the contract it is necessary to give to the Italian Agency of Revenue (where the lease agreement has been originally registered):
- Receipt of F24 form for the payment of stamp duty for the cessation of the contract;
- RLI Elide form.